diff --git a/src/testdir/test_vim9_assign.vim b/src/testdir/test_vim9_assign.vim
index 23c0a89..f71226e 100644
--- a/src/testdir/test_vim9_assign.vim
+++ b/src/testdir/test_vim9_assign.vim
@@ -72,6 +72,13 @@
   CheckDefFailure(['var lambda = () => "lambda"'], 'E704:')
   CheckScriptFailure(['var x = "x"'], 'E1124:')
 
+  # lower case name is OK for a list
+  var lambdaLines =<< trim END
+      var lambdaList: list<func> = [Test_syntax]
+      lambdaList[0] = () => "lambda"
+  END
+  CheckDefAndScriptSuccess(lambdaLines)
+
   var nr: number = 1234
   CheckDefFailure(['var nr: number = "asdf"'], 'E1012:')
 
diff --git a/src/version.c b/src/version.c
index 3bb4ece..6ac96ac 100644
--- a/src/version.c
+++ b/src/version.c
@@ -751,6 +751,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    2618,
+/**/
     2617,
 /**/
     2616,
diff --git a/src/vim9compile.c b/src/vim9compile.c
index 93ded08..458b4a1 100644
--- a/src/vim9compile.c
+++ b/src/vim9compile.c
@@ -5832,11 +5832,13 @@
 	    return FAIL;
 	}
 
-	// new local variable
+	// Check the name is valid for a funcref.
 	if ((lhs->lhs_type->tt_type == VAR_FUNC
 				      || lhs->lhs_type->tt_type == VAR_PARTIAL)
-				   && var_wrong_func_name(lhs->lhs_name, TRUE))
+		&& var_wrong_func_name(lhs->lhs_name, TRUE))
 	    return FAIL;
+
+	// New local variable.
 	lhs->lhs_lvar = reserve_local(cctx, var_start, lhs->lhs_varlen,
 		    cmdidx == CMD_final || cmdidx == CMD_const, lhs->lhs_type);
 	if (lhs->lhs_lvar == NULL)
@@ -6275,6 +6277,7 @@
 		{
 		    if ((rhs_type->tt_type == VAR_FUNC
 				|| rhs_type->tt_type == VAR_PARTIAL)
+			    && !lhs.lhs_has_index
 			    && var_wrong_func_name(lhs.lhs_name, TRUE))
 			goto theend;